16 Jan 2015

Drivers favour compulsory insurance - survey

9:03 am on 16 January 2015

A survey of insured motorists has found an overwhelming majority want uninsured drivers and cars off the road, Radio New Zealand reports.

Uninsured drivers make up only about 5 percent of motorists but the survey, commissioned by consumer rating agency Canstar Blue, suggests they may be responsible for more than their fair share of crashes.

Canstar spokesperson Derek Bonnar said it was no surprise that that 86 percent supported the view that people who could not afford insurance should not be on the road. He said Gen Ys - under 35 year olds - were less likely to agree because they would be more “cash-strapped compared with older New Zelaanders.”

Insurance Council chief executive Tim Grafton said he had “an open mind” on compulsory insurance but he noted there were some people who were “essentially uninsurable”, like high-risk drivers with multiple driving offences on their record.

However, the Automobile Association does not support compulsory insurance and warns it would drive up costs.

Motoring affairs spokesperson, Mike Noon, said high-risk drivers were unlikely to get insurance, even if it was mandatory, however he said the AA still recommended all drivers should at least have third party insurance.

“With your $2000 vehicle you could hit a car that's worth $100,000 ... that you're still going to have to pay for. You don't want to get the equivalent of a student loan without getting the degree.”